Azure Pricing: Description and Option 1

Azure Pricing: Description and Option 1

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Azure Pricing: Download our Free eBook

Most of the questions we hear around Azure stem from a lack of understanding about Azure pricing. And as a matter of fact, Microsoft has recently lowered prices of many of the most popular virtual machines.

Although we’ll explain all the ways to purchase Azure in this article, let’s start with the basics.

What is Azure and why do you need it for your company?

Azure is the Microsoft trusted cloud platform that includes a growing collection of integrated cloud services.

Azure can help your company optimize:

  • Websites– the cloud provides complete flexibility in capacity of websites. Your website won’t crash or slow down when you launch an amazing product thanks to the automatic capacity-increase feature.
  • Mobile Applications– Within minutes, your team can store data in the cloud, authenticate users and push notifications to millions of devices. A single developer can use the entire Microsoft infrastructure without having to deal with the hassle of building it himself.
  • Big Data–  Azure can be used for a large amount of data that needs to be stored and analyzed.
  • Storage and Backup– No need to physically manage the machines yourself, and users have the ability to scale up at a moment’s notice.
  • Virtual Machines/Virtual Networks– You can extend your existing server farm without the need to spec out a new piece of hardware and wait for it to be delivered. You can even spin up a VM in a matter of minutes or create an entire virtual network without having to buy a single piece of hardware

Why is Azure the most trusted and secure cloud platform?

Security and privacy are embedded into the development of Azure. Microsoft has the most comprehensive compliance coverage of any cloud provider, spending approximately $1B a year to make sure it is the safest cloud in the world.  Microsoft Azure trust is centered around:

  • Security – Microsoft works to keep your data safe
  • Privacy – You own and control your customer data
  • Transparency – You know how your data is stored and accessed, and how Microsoft helps to secure it
  • Compliance – Microsoft conforms to global standards and has more certification than any other cloud provider

Visit the Microsoft Azure Trust Center for more information.

How is Azure cost calculated?

Depending on the type of service, cost is calculated based on dollars per hour, dollars per gigabyte, and/or dollars per transaction for consumption-based services. You can download our eBook around Azure pricing and licensing to get more information around cost calculations.

Below we’ll cover the various ways to purchase Azure licensing and discuss the pros and cons of the four most common options.

Option 1: Microsoft Azure Direct (Pay-As-You-Go)

With Azure Direct, you create an account on the Azure portal and add credit/debit card to the Azure account. You will be charged in the next month based on the amount of Azure services you consumed.

With this option, you pay Microsoft directly without any support or involvement from a Microsoft Partner.


  • Easy to setup, you just need a credit card to get started
  • No commitment – only pay for what you use each month
  • Very flexible
  • Billing comes directly from Microsoft


  • Azure subscription is tied to Microsoft Account (aka “LiveID”); you must use Microsoft account credentials to log in to the Azure management portal.
  • You must use a credit card for billing.
  • If your credit card expires or is declined, the Azure account may be suspended. This will result in all public IP addresses being released and all workloads in Azure being suspended and deactivated.
  • There is no licensing team integration or engagement – neither from Microsoft nor from a Microsoft Partner.
  • You will not have access to Azure Enterprise Portal features like BI Dashboards, and billing and payment information is available on Azure Account Center.
  • You must go directly to Microsoft for support, which requires a higher level of technical expertise.

Adam has over 8 years of experience working with customers to help them manage and understand their software asset landscape. He is particularly strong in regards to Microsoft licensing and SAM strategy.